Let's follow the case of a family that moved from another state. After purchasing a rental home near Anandale, Virginia, they initially tried to manage it themselves, but they repeatedly struggled to respond to tenant inquiries in a timely manner, leading them to reconsider hiring a management company.

The first thing this family checked was the rental rates in Anandale. According to RentCafe, the average rent in Anandale for 2026 is $2,242 for a 1,051 square foot unit, which is a 3.13 percent decrease from the previous year. While the rent is significantly higher compared to several cities in Texas, it is important to also consider that the purchase prices are correspondingly high.

Next, they looked into Virginia's rental laws. Virginia is a state without rent control, but the Virginia Residential Landlord and Tenant Act requires that security deposits be returned itemized within 45 days after eviction, and it prohibits retaliatory actions against tenants. While there is no cap on rent increases, the procedures and notification requirements are more stringent than in Texas, which was a new realization for this family.

The third thing they checked was property taxes. The effective property tax rate in Fairfax County, where Anandale is located, is about 1.01 percent, which is higher than the Virginia state average of 0.71 percent but lower than many counties in Texas. If they carried over their habit of calculating property taxes based on Texas standards, they might end up overestimating their burden.

The fourth consideration was the loan structure. For investment properties, the down payment is typically between 15 to 25 percent, which is higher than for primary residences, and a credit score of at least 620 is required for approval, although a score above 740 is needed to secure favorable interest rates. Interest rates are set 0.5 to 0.75 percentage points higher than for primary residences, and lenders only recognize up to 75 percent of expected rental income as qualifying income.

Fifth, the reasons for reconsidering hiring a management company can be summarized in numbers. Typically, management fees range from 8 to 12 percent of the monthly rent, which means that for a rent of $2,242, the monthly fee would be about $179 to $269. Considering the time and stress involved in dealing with tenants, they concluded that this cost is not burdensome. Additionally, they factored in that about 1 percent of the property value is typically spent on maintenance each year, and they also considered the 1 percent rule and cap rate to see if the monthly rent exceeds 1 percent of the purchase price.

Finally, they signed up for landlord insurance. Unlike standard homeowners insurance, this policy includes coverage for rental loss and tenant liability, resulting in a higher premium, but they viewed it as a choice that reduces risk alongside hiring a management company. They also noted that if they plan to sell this house and move to another property later, they could defer capital gains tax through a 1031 exchange.

Anandale is close to school districts preferred by Korean families, leading to steady rental demand, but since school district boundaries change frequently, it is advisable to verify the assigned school for the specific address before purchasing.

It is also important to note that unlike Texas, Virginia has a state income tax. With a top rate reaching 5.75 percent, if they continue to calculate tax burdens on rental income based on Texas standards, they may overestimate their actual net income. However, Anandale has a relatively stable job market due to the presence of many federal government and related agency employees, which tends to lead to consistent rental demand. When deciding whether to hire a management company, it is also wise to calculate the cap rate by dividing net operating income by the purchase price. This figure reflects all management costs, property taxes, and insurance premiums, providing a more accurate picture of the actual income structure than simply looking at rental levels.

This article is not investment or legal advice, and since tax and rental laws can vary by county, it is recommended to consult with real estate and tax professionals before entering into any contracts.